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Study on Renewable Energy Resources, Oman - authority for ...

Study on Renewable Energy Resources, Oman - authority for ...

Renewable Energy Resources in Oman Salalah Power System The Dhofar Power Company (DPC) has a concession agreement to generate, transmission, distribution and supply of electricity in its concession area until 2021. The generation facilities are listed in Table 3.4. Table 3.4 Generation Capacity Salalah Power System, Ref / 3/ Name Technology/ No. of Units Capacity MW Fuel Production 2005 GWh DPC GT / 6 195 Nat. gas 1,057 Frame 6 GT / 1 30 Nat. gas 0 LM 2500 GT / 1 17 Nat. gas 0 RAECO gen 70 Diesel 1 Total 312 1,058 The vertically integrated nature of the Salalah Concession Agreement is in contract. OPWP is counterpart in the concession agreement and its activities are regulated by the Authority. Demand and capacity projections are shown in the diagram below. The diagram shows that Salalah Power Systems is in need of new capacity already from 2007. The RAECO generation capacity is not available after 2008, leaving a short fall in capacity of 70 MW. The strong demand growth is the result of increasing population, new industrial projects in the new Salalah Free Zone, development of tourism and expansion of the system to new areas. Fig. 3.4 Capacity Projections for the Salalah, Ref /5/ MW 600 500 400 300 200 100 0 Peak Demand and Capacity Projections Salaleh 2006 2007 2008 2009 2010 2011 2012 2013 Year Demand Forecast MW Contracted capacity Potential Capacity Page 42 of 134 .

Renewable Energy Resources in Oman The forecast for electricity generation for Salalah is 3.5 TWh in 2014. The total power capacity and the total electricity generation in Oman in 2007 and respective forecasts for 2014 are shown in Fig. 3.5. Fig .3.5 Capacity and electricity generation, 2007 and 2014 forecast, Ref /23/ 40,000 35,000 30,000 2007 2014 MW & GWh 25,000 20,000 15,000 10,000 5,000 0 Capacity MW Generation GWh The total additional power capacity required in order to meet the demand in 2014 is 2,758 MW. 3.3.3 Interconnection Projects A 220 kV interconnection between MIS and UAE (Abu Dhabi) was completed in early 2007. This is the first step in an interconnection system linking all GCC members. Currently the MIS is linked to RAECO through Petroleum Development of Oman systems. The plan is to link the PDO system to the Dhofar areas also. On a longer term it is likely that a system linking MIS and Dhofar via Duqm will be established. 3.3.4 Current Energy Sector Policy The current sector law for electricity and water implements the Government policies for the electricity sector. The most important elements of the law include: • A comprehensive restructuring of the electricity sector, whereby operational responsibility for the sector will pass from MHEW to newly created successor entities that will for a time, be wholly owned by the Government. • Further privatisation of the electricity sector, in accordance with a timetable of the Governments choosing, the Government shareholding in certain successor companies will be offered to local and international investors thereby extending private sector participation; Page 43 of 134 .

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